Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Two out of the three major indices traded up today One out of the three major indices traded up today The three major indices are trading lower today with the

Dow Jones Industrial Average

(

^DJI

) trading down 5.88 points (0.0%) at 16,315 as of Tuesday, Oct. 14, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,884 issues advancing vs. 1,209 declining with 128 unchanged.

The Computer Hardware industry as a whole closed the day up 0.6% versus the S&P 500, which was up 0.2%. Top gainers within the Computer Hardware industry included

Video Display

(

VIDE

), up 6.3%,

Mad Catz Interactive

(

MCZ

), up 2.4%,

Lantronix

(

LTRX

), up 2.8%,

Pangaea Logistics Solutions

(

PANL

), up 4.3% and

Dataram

(

DRAM

), up 4.4%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Pangaea Logistics Solutions

(

PANL

) is one of the companies that pushed the Computer Hardware industry higher today. Pangaea Logistics Solutions was up $0.27 (4.3%) to $6.52 on light volume. Throughout the day, 3,920 shares of Pangaea Logistics Solutions exchanged hands as compared to its average daily volume of 14,400 shares. The stock ranged in a price between $6.24-$6.52 after having opened the day at $6.24 as compared to the previous trading day's close of $6.25.

Pangaea Logistics Solutions has a market cap of $79.4 million and is part of the technology sector. Shares are down 34.9% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close,

Lantronix

(

LTRX

) was up $0.05 (2.8%) to $1.81 on light volume. Throughout the day, 6,300 shares of Lantronix exchanged hands as compared to its average daily volume of 46,800 shares. The stock ranged in a price between $1.76-$1.81 after having opened the day at $1.76 as compared to the previous trading day's close of $1.76.

Lantronix, Inc. designs, develops, markets, and sells networking and communications products in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Lantronix has a market cap of $26.0 million and is part of the technology sector. Shares are up 12.5% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Lantronix a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Lantronix as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from TheStreet Ratings analysis on LTRX go as follows:

  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • LANTRONIX INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, LANTRONIX INC continued to lose money by earning -$0.06 versus -$0.19 in the prior year. This year, the market expects an improvement in earnings (-$0.01 versus -$0.06).
  • LTRX's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.99 is somewhat weak and could be cause for future problems.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.1%. Since the same quarter one year prior, revenues slightly dropped by 0.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Communications Equipment industry and the overall market, LANTRONIX INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here:

Lantronix Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Mad Catz Interactive

(

MCZ

) was another company that pushed the Computer Hardware industry higher today. Mad Catz Interactive was up $0.01 (2.4%) to $0.42 on light volume. Throughout the day, 83,650 shares of Mad Catz Interactive exchanged hands as compared to its average daily volume of 152,600 shares. The stock ranged in a price between $0.41-$0.43 after having opened the day at $0.42 as compared to the previous trading day's close of $0.42.

Mad Catz Interactive, Inc. designs, manufactures, markets, sells, and distributes various entertainment products in the United States and internationally. Mad Catz Interactive has a market cap of $26.7 million and is part of the technology sector. Shares are down 19.0% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Mad Catz Interactive a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Mad Catz Interactive as a

sell

. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on MCZ go as follows:

  • The gross profit margin for MAD CATZ INTERACTIVE INC is currently lower than what is desirable, coming in at 32.57%. Regardless of MCZ's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, MCZ's net profit margin of -7.43% significantly underperformed when compared to the industry average.
  • MCZ's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 38.24%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Household Durables industry and the overall market, MAD CATZ INTERACTIVE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • MCZ, with its decline in revenue, slightly underperformed the industry average of 5.9%. Since the same quarter one year prior, revenues fell by 10.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.87, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.45 is very weak and demonstrates a lack of ability to pay short-term obligations.

You can view the full analysis from the report here:

Mad Catz Interactive Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.